Tag: outsourcing

  • Pakistan Railways to Outsource 13 Passenger Trains by December

    Pakistan Railways to Outsource 13 Passenger Trains by December

    Pakistan Railways will hand over commercial operations of 13 express passenger trains to private operators by December 31. The transfer expands an existing model that already sees private contractors running six passenger services across the national network.

    Minister for Railways Hanif Abbasi directed railway authorities in Lahore to complete the bidding, advertising and contract awards before the end of the year. The state-run network is restructuring passenger and luggage operations while shifting its commercial weight toward higher-yielding transport corridors.

    The Routes Bound for Private Tenders

    The 13 services scheduled for private management include several long-haul express lines and regional passenger links. The list covers Tezgam, Karachi Express, Bahauddin Zakariya Express, Allama Iqbal Express, Sukkur Express, Fareed Express, Mohenjodaro Express, Sandal, Faiz Ahmad Faiz, Babu Passenger, Bulleh Shah Passenger, Lasani Express and Sialkot Express.

    Private contractors take over ticketing, onboard services and passenger management on outsourced routes, while Pakistan Railways retains control of track infrastructure, locomotives and train drivers. Luggage vans will also pass to private operators under the same tendering programme.

    “At present, the commercial operation of six trains is being carried out by the private parties,”

    Commercial outsourcing allows the railway department to secure guaranteed concession revenue without carrying the operational overhead of retail ticketing, catering and onboard cleaning. For commercial transport operators, securing established long-distance passenger trunk routes provides predictable cash flow, though profitability depends heavily on locomotive reliability and punctual turnaround schedules.

    Freight Overtakes Passenger Earnings

    Freight revenue has surpassed passenger revenue across Pakistan Railways for the first time in the department’s history. The carrier expects total earnings from passenger and freight operations combined to reach Rs120 billion by the close of the current fiscal year on June 30.

    Industrial freight corridors have taken priority across Asian railway networks looking to reduce operating losses, from India’s dedicated freight corridors to Southeast Asian intermodal lines. In Pakistan, freight profitability gives the state carrier a financial buffer while passenger concessions transfer retail revenue risk to commercial partners. State authorities are also moving to protect revenue by blacklisting material vendors who miss supply deadlines, while installing modern closed-circuit television systems and private security guards at workshops and rail yards to halt parts theft.

    Infrastructure Repairs and Fleet Recovery

    Private train concessions will depend on track availability and rolling stock fitness. Pakistan Railways is accelerating the repair of idle coaches and wagons while replacing faulty brake cylinders, blocks and shoes across its fleet.

    Heavy monsoon flooding damaged critical transport links earlier this year, cutting rail traffic on key industrial routes. Rehabilitation of the flood-damaged Mian Kallar Bridge on the Lahore-Faisalabad track is scheduled for completion within 60 days to restore full regional traffic.

    Sukkur Track Works and Timetable Targets

    Ongoing track renewal in the Sukkur division is scheduled to finish by December 31. Completing the replacement work will cut travel time by approximately 90 minutes on key north-south services connecting Punjab with Sindh ports.

    Contract awards for the 13 passenger services will roll out through December, with the department targeting Rs120 billion in full-year operational revenue when the fiscal period closes on June 30.

  • Vietnam poised to build on IT outsourcing gains

    Vietnam poised to build on IT outsourcing gains

    Apart from skills and adaptability, low staff turnover in the sector makes the country more attractive to tech giants.

    Vietnam continues to be a favored outsourcing destination for multinational companies even as the current leader, India, experiences some hiccups.

    A recent article in the Forbes magazine said in its title that Vietnam was a “small but mighty powerhouse” for IT outsourcing.

    It said giant technology companies like Intel, IBM, Samsung Display, Nokia, and Microsoft continue to invest in Vietnam’s growing tech workforce.

    The author of the article, Anna Frazzetto, Chief Digital Officer and Senior Vice President at Harvey Nash, which has a decade plus of outsourcing experience in Vietnam, said, “technology specialists in Vietnam are comfortable with quickly becoming a natural extension of global clients, ready to challenge norms and bring innovative ideas to the table.”

    Another major factor that makes Vietnam attractive is the tendency of people to stay on in the country, unlike IT professionals in India, Malaysia and other countries who are ready to move to other countries for jobs that pay well.

    While the relative lack of fluency in English is a growth constraining factor, Vietnam’s investment in education, and the extra attention it pays to nurturing knowledge and talent in science and math is a positive aspect that will help Vietnam build on its outsourcing potential, she said.

    These positive factors have meant that business process outsourcing (BPO) is growing fast in Vietnam. In 2017, consulting firm PricewaterhouseCoopers (PwC)’s “Spotlight on Vietnam” report also indicated that BPO was among the country’s most five promising sectors to invest in.

    Also last year, the Vietnam Software and IT Services Association (VINASA) said the country’s BPO industry has grown 20 to 35 percent annually over a decade.

    A Global Services Location Index report in 2017 by A.T Kearney consulting firm said Vietnam has jumped five places to sixth for countries with great financial attractiveness, availability of highly skilled people and good business environment. The five countries above Vietnam were India, China, Malaysia, Indonesia and Brazil.

    Dinh Thi Quynh Van, general director of PwC Vietnam, said in a Voice of Vietnam report earlier this year that Vietnam’s BPO was following a similar growth trajectory to that of India and the Philippines.

    But she said Vietnam’s BPO workforce should stay innovative to meet ever-increasing demand in the market.